CBRE’s James Parry, who negotiated the deal with colleague Flint Davidson in conjunction with Cushman & Wakefield’s Josh Cullen and Mark Hansen, said local and offshore private individuals and institutions are increasingly scrambling to secure harbor investments in Australia’s largest capital.
“There is significant buyer interest in well-located office properties in the Sydney CBD, with continued strength in the leasing market underpinning strong pricing results,” he said.
Hansen said 10 Barrack Street has attracted significant inquiries from local and offshore investors, who were attracted by its prime location, proximity to public transportation and rare lot size of 1040 sq ft CBD.
“The successful result is a testament to the Sydney CBD’s strong office leasing performance, with 10 Barrack proving resilient during Covid-19, a testament not only to the renovation undertaken by AEW but also to 10 Barrack Street’s coveted position on the market,” he said.
According to the latest CBRE Asia-Pacific Investor Intentions Survey, logistics remains the preferred investment sector in Asia-Pacific (36 percent), but more investors are shifting their focus to office real estate (31 percent in 2022 vs. 26 percent before). assume that the demand for office space will increase by 10 percent in the next three years.
Among alternative assets, data centers continue to take center stage (41 percent), while demand for cold storage (35 percent) and healthcare (31 percent) is expected to continue to grow.
The survey of 535 Asia-Pacific-based investors also found that more investors (56 percent) have adopted or are integrating environmental, social and governance (ESG) criteria into their investments, including prioritizing the purchase of green-certified buildings and retrofitting existing properties to increase resource efficiency.
